KPMG CEO Outlook: How Pharma Is Navigating AI, Regulatory Demands, and Supply Chain Risk

The KPMG CEO Outlook Survey, fielded in September 2025 and released on Oct. 14, 2025, captures the strategic views of more than 100 life sciences CEOs concerning artificial intelligence (AI) investment, workforce needs, and operational stability (1). The survey findings confirm that despite economic uncertainty, AI is a decisive and growing investment priority. A high degree of confidence exists, with 76% of leaders certain their organization is moving at the right pace to handle the speed of AI development and its effects.

“Despite a climate of uncertainty, life science leaders are decisively investing in AI to drive innovation and product development,” said Kristin Pothier, KPMG United States Life Science Leader, in a statement provided along with the release of the report (2). “Success requires a dual focus: upskilling the workforce and ethical AI adoption while rethinking supply chain resilience to deliver breakthrough therapies with confidence worldwide.”

Following are some key findings reflecting the opinions and experiences of a high percentage of the CEOs surveyed.

Decisive AI investment

AI is a top investment priority for 75% of life sciences CEOs, up sharply from 60% in 2024. Financially, 73% anticipate spending 10–20% of their budget on AI in the next 12 months.

Rapid ROI expectations

A majority of leaders (65%) anticipate seeing a return on their AI implementation investment within one to three years.

Targeted funding for operations

Investment is highly concentrated in operational areas: 80% are investing in agentic AI, and 79% are investing in AI in products and services and for intelligent manufacturing.

Workforce upskilling is critical

AI workforce readiness or upskilling is cited by 85% of CEOs as a trend impacting organizational prosperity during the next three years.

Focus on talent retention

More than three-quarters (77%) of organizations are modifying their long-term workforce strategy (2–5 years) to focus on retaining and re-training high potential talent.

Rising ethical concerns

Ethical challenges are cited by 66% of organizations as a barrier to AI implementation, an increase from 58% in 2024.

Regulatory demands impact prosperity

Regulatory demands are cited by 74% of CEOs as a trend that will impact prosperity during the next three years.

High security concerns

Six out of 10 CEOs are “extremely concerned” about fraud detection and prevention, and 47% are equally concerned about identity theft and data privacy.

References

1. KPMG. Life Sciences 2025 CEO Findings. Provided via email correspondence on Oct. 13, 2025.
2. Statement provided via email correspondence on Oct. 13, 2025.